{
    "complex": true,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "ucits": false,
    "type": "ETP",
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Inverse Exposure",
        "Daily Compounding Effect",
        "Counterparty Risk",
        "Complex Index Tracking"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree EURO STOXX 50 3x Daily Short ETP exhibits multiple complexity factors under MiFID II. It uses synthetic replication via swaps to achieve a -3x daily inverse exposure to the EURO STOXX 50 Index, which introduces significant leverage and counterparty risk. The daily compounding effect and the potential for tracking error due to rolling futures contracts further complicate the product. Additionally, the ETP is not UCITS-compliant, and its high-risk rating (7 out of 7) underscores its speculative nature. The product is explicitly designed for sophisticated investors who understand leverage and short-selling risks, reinforcing its complex classification.",
    "confidence": 95,
    "risk_level": 7,
    "counterparty_risk": true,
    "capital_protection": false,
    "liquidity_risk": true,
    "comprehension_warning": true,
    "additional_notes": "The ETP's structure, which relies on swaps and daily rebalancing, introduces risks that are not easily understood by retail investors. The potential for significant tracking error and the impact of compounding over time make it unsuitable for non-sophisticated investors. The product's documentation explicitly states that it is not simple and may be difficult to understand, further supporting its classification as complex under MiFID II."
}